Topic: Newbies say no to Trading. - page 4. (Read 718 times)

Newbies are incapable to trade not only because they lack the knowledge and years of experience in the market but  also trading itself is a high risk activity that anyone gets into trading will gain higher chances of losing rather than making profitable trades. This is why newbies should be discouraged to take part in trading because their level of understanding its risks are still low that they cannot even afford to take the risks and overcome them. At least they should be knowledgeable enough and must learn the basics in trading before they decide to start trading in the market.

I have always said so. To make money in trading you need a lot of knowledge and experience, as well as capital, because if you use leverage, and the more leverage you use, the more likely you are to go broke. For newbies and people in general it is much better to invest for the long term. If you are going to buy Bitcoin, which I hope will be after researching what it is and its history, the best for someone with little capital is DCA. But this is a boring strategy that is not promoted by the trading sites


That's what happens to almost everyone. And not only in crypto, which is more volatile, also in the stock market.

The best thing to do is to keep it simple and buy Bitcoin to the best of your ability. Every week or every month. Buy, buy and buy. And wait for the next bull market, or better yet the one after that to sell.

This if you include it in an overall wealth building plan is the icing on the cake.

Good warning for beginners. However, who are the traders who are trading today? Were they born that way? In the same way, if you just hold Bitcoin and invest in it on a weekly basis, will something change for a person who wants to get into trading? I speak from my own experience. I am not attracted to trading. If one day I decide to trade, I will need practice anyway. Without practice, I won't understand anything. Why am I all here? Those who want to get into trading should certainly learn a lot of information about it, but one day they will still have to try. And nothing can happen without mistakes.  People who have hit a lot of bumps themselves have gained their own experience, and at the same time have not deviated from their goal, of eventually becoming traders. If someone is willing to take risks, then they should try. Just sitting around and waiting for your investment to grow will not make you a skilled trader.

To start trading, one must have market analysis skills. Without having it, one would not be able to make a profit like other people and would only experience losses. Beginners are attracted to trading because they see many ads showing someone making big profits trading.

But if they don't learn more about trading soon, they can't turn a profit. And for beginners, I suggest learning to invest by buying Bitcoin regularly so you can collect lots of Bitcoin and sell it when the bull run arrives. This method will be safer than trading if someone has not been able to analyze properly and that is also what I always recommend to my friends who have an interest in crypto.

Do not be tempted by the short profits advertised because it is not what you think. You have no idea how hard they have practiced trading and what they have learned to make so much money. If you really want to trade, you must learn more and practice it using small money first to get used to trading and understand how to analyze.

There are indeed a number of obstacles for beginners if they really want to invest in crypto, for example from capital, although that varies, of course, and the most common is the unpreparedness of the psychologist due to not having adequate trading knowledge which in the end always suffers losses besides other things. As the OP pointed out there may be a point to this as well and at least It's best to learn to do your own analysis. So that the analysis can be adjusted to our needs.
     

OP, you gave a good point here. Newbies that just come into the crypto space shouldn't get excited and think that trading is such an easy thing when they even lack the knowledge of reading the chart and indicator talk more of understanding them. I have never thought of going in trading because I feel that it is stressful and you the skill and your own strategy to make profits. Some newbies even go at extreme miles to join some WhatsApp group for guide on how to trade and they end up getting your information from people who have little or no idea on trading. Before you know it the newbie will be scammed because he will pay for the information and will still loss using the information provided to him by the WhatsApp group. It is good that all newbies should know that to be a professional trader isn't a day job but needs years to understand it before practising. Newbies that are eager to see how trading is,should only trade with the money that they can afford to loss and they should also know that trading is a high risk practice.

I've also tried trading. Many of my local Bitcoin friends also tried trading. Most of us were not really good traders. We're often just following the calls of those who are so much better than us, those who have been into all kinds of trading before getting into crypto trading. But guess what, most of us have already quit. Perhaps all as far as crypto trading is concerned. And the reason is that it wasn't easy. And it wasn't really profitable.

Perhaps the easiest way to trade is to wait for huge swings. Selling at an ATH, for example, before waiting for the correction to buy back might be profitable. But it takes a lot of patience, and newbies might not have it. When I was a newbie, I was very eager and excited.

Very good point, trading is very risky and we should know about the risks before doing it - similarly like gambling.
I've written a whole topic about trade vs HODL if you are interested: Trade vs. HODL - avoid traps


I wouldn't even say that trading is a good idea for "professionals" because trading by technical analysis has no proven strategy. It's mostly luck and for Bitcoin, if some of these (long, speculationg in favor of rising prices) trades occured during a bull market because Bitcoin's fundamentals are very promising for long-term profits by rising prices. So, some trades are in profits of course but that's only because Bitcoin has gone up anyways during this time. So, HODL would be better due to Bitcoin's scarcity. That's why Bitcoin is a good store of value.
Trading according to technical analysis will be much more like gambling - there's no proven strategy to make a profit from technical analysis. If there would be, an experienced coder would have written a program to trade these patters long ago - but there's no strategy therefore no such profitable trading program exists.
More about it is described in my "Trade vs. HODL - avoid traps" as well.

Knowledge is one of the determining factors for someone's success in the world of crypto or Bitcoin. What you say is true, it's best for beginners who really don't understand crypto or Bitcoin at all or those who don't have basic knowledge should not rush to enter the world of trading. Trading is not as easy as it seems because it is more complex.
Even though trading requires more knowledge, in my opinion trading or investing is not easy, they have their own difficulties because any activity carried out in bitcoin is not a get-rich-quick scheme, and it is true that not everyone has the expertise to become a crypto trader.
For anyone, including a beginner or an expert it is really not recommended to quit their main job just because they bought a portion of Bitcoin, even though Bitcoin has great potential, for our daily needs we also need fiat money which can only be obtained through work.

The early stages of trading are the basics and the foundation that will determine how strong a trader you will become. If you skip the process of learning and hurry into trading, you will have a lot of regrettable experience  in trading that will affect your finance and can make you never to consider trading again.  Newbies to trading should be patient to take their time in understanding all the necessary indicators to become a good profitable trader.

The faster you want to make money from trading, the faster you will loose money from it if you start trading when you are not ready.

Newbies, just like you've addressed them - are not supposed to do anything that involves Thier intellects.. This is acquired by consistent proofreading and orientation - something they haven't got yet..(if they had, they wouldn't be called newbies)
Trading needs alot of attention and inbuilt or learnt techniques that doesn't just begin spontaneously., It takes time. Technical analysis isn't a child's play dude; I love your advice on this.

Sandra 🧑‍🦰

You know it’s the best option newbies can do at the moment. While there are bigger profits in trading, but it also comes with bigger losses as well especially if you trade following your greed, without even knowing how to start on your trades and how to make it profitable in the end. That’s why being knowledgeable is a necessity before you trade. You cannot just easily trade and expect profits. Trading is never easy and should be learned the hard way. So you need to work hard and study trading at first before you decide to finally trade and commit initial mistakes and losses.

Is not an out of place idea that most times, investors seeks means to multiple or make certain x in no time and trading is the way to archive that though not an easy thing to do and happens to be some means to get your bankroll exhausted easily too due to inexperience.

My concerns from tbe quote would be,
Do you think they should bug first before learning what it is?
Your ideas @OP centres on buy first > learn > DCA but I feel that shouldn't be. It ought to be learn > Buy > DCA.

I tell you, its much easier to make mistakes in buying or trying to invest before figuring out even the basics about bitcoin or cryptocurrencies. This is what scammers thrive on, your ignorance and you find yourself investing in a scam package on a scam platform in your bid to take opportunities before learning. On other attempts, you might just have someone create you a wallet and be aware of your private key or seed phrase not well aware of the risk in having anyone know these privacy concern details.

Learning comes first!

Trading is way more profitable than investing alone, but let’s accept the fact that not all who engage in trading are capable enough to make it work. A lot are only good at the beginning but end up losing in the end. Most especially for newbies as they have no certain knowledge and skills that are required for a successful trading. However, even investing alone should not be overlook as well. Once you decide to invest, at least you have studied your investment more intensively and you have set your own goals and develop ways on how to make it a successful investment.

Why would anyone wants to trade what they believe to be a wealth creation opportunity that the best way to benefit from it is by hodling. Bitcoin isn't meant to be traded if you ask for my personality opinion but since we have those that think trading will make them rich because of the way they see Internet traders display their lavish lifestyle on the internet and claim they made all those wealth from trading, newbies wanting to be like them now engage in trading without knowing that most of the lifestyle are fake and only video to catch gullible newbies who will believe their story and buy their online courses which is probably where they're getting the money to sponsor their luxury lifestyle.


There's no crime if you prefer trading to holdling but investing is better and you can look through history to comfirm this. Why will anybody without an idea on trading decide to try it, they're not thinking with their right senses if they decide to trade without having any knowledge as that's a suicide mission. The market is no respecter of anyone and it's very brutal especially the crypto market as the price volatility is outrageous and that's because the  market is still in the developments stages as it's not that big yet like other financial markets. If you want to get into trading, you should make learning trading your focus and wait until you have mastered it before putting in money.

I still say that a higher percentage of people joining cryptocurrency currently believe they can make quick and easy money here without any risk, some people don’t believe they can lose money in cryptocurrency until they join and they start losing. I don’t blame some newbies for that, I do blame people who introduce them to it because they over-hype cryptocurrency for them without telling them the basics they need to know and the facts they need to know. If we check most of the videos on YouTube, most of them only talk about profit and won’t talk about loss, just to get more subscribers and viewers, which is really misleading.

I can’t really say it’s a bad idea for newbies to start trading, all the professional traders we see today also started as newbies, but it’s risky for a beginner to trade, they will definitely lose money in the process of learning. They shouldn’t expect money immediately when they start learning how to trade, but with time they will also turn professional and start making money. If you are planning to hold, it’s really less risky, and those do not really require much analysis, all you will do is just buy and hold.

Trading is not easy and if you think you can rush into it and make money, then you might end up losing all your money, but any newbie that really want to learn how to trade can go into it, but it’s not what you can just learn within a very short period of time, it’s really going to take time and you need constant practicing, gradually their will be improvement. People that understand risk management and fundamental analysis also started learning it as beginners, but it’s not a day job.

It’s really the wrong idea to quit your job just because you are a trader or have already invested money in bitcoin. It’s better to have backup, and it’s better to have more than one source of income. Investing some part of your salary is nice, but I won’t recommend any percentage that you are supposed to invest. Just invest any amount you know it’s not going to affect you after investing, don’t force yourself to invest a fixed amount of money.

It's the impression entirely for the whole market wherein they think that it's an easy going market and everyone will become rich because they're into crypto, Bitcoin.

While someone has to get an experience in order to get the idea of how trading works. Only start trading with an amount that you can afford to lose and if you're persistent enough to keep going, think of those losses as your enrolment fee to learn more.

And don't forget that it's not just trading is your only option to enter this market, you can choose to be an investor/hodler like everyone does.

You left nothing to add more which is a good sign that you are also learning. You must have learned these lesson with some interesting history or backstory because we all have one and mine is really raging one as i started to avoid Trading at all and now my focus is in holding only.

My suggestion is if the newbies do not want to trade then they should start to do holding because holding has less complexity and we do not have to lean advance TA and FA plus holding is only beneficial if you are holding for longer period of time not just for small period of time like month.

Most of the newbies think holding some coin Like BTC for a month came under the category of holding but that's swing trading. getting familiar with the types of trading will help a lot of newbies to differentiate between holding time period and trading time period plus they will also get to know the ups and downs of both investing options.

Having a reasonable amount to start trading  in cryptocurrencies does not guarantee a profitable trading with a better result, what matters most in trading is to gain knowledge first. The knowledge is the principal thing one must apply in trading , considering money to be a good start for trading is a wrong step that will surely not end well. People think money is the main factor in trading and neglect knowledge because they are too desperate to make money quickly from trading.  

Trading is not that easy but having knowledge about trading is better than trading with no idea and hoping more money can be made because good amount of capital was used to start up trading.

Anything in this world is quite hard to do for a beginner and I don't say newbies not to trade but I will say obviously that you can start trading when you have learnt the basics of trading and you may try with the demo funds to trade or start with a little principal. To get a good result in trading we must be experienced and have proper research and analytical knowledge to gain profits and to minimize trading losses. So there are many websites where newbies can exercise with Demo funds and gather their knowledge and experience. Some popular demo trading platforms are : Bybit Demo trading, Etoro, Cryptohopper, Kraken demo trading, Kucoin Demo trading and many more.

To know more about popular demo trading platforms you can visit here: https://learn.bybit.com/crypto/best-crypto-demo-trading-account

Anyway some will think demo trading is worthless but to be true it's a better way to gather your experience and control your emotions on trading. Beside this you should focus on technical analysis and fundamental analysis. For technical analysis like chart or pattern newbies should visit https://tradingview.com for better analysis. Here you will find others opinion or analysis too and learn from their research too.

So not only newbies but anyone can start crypto trading when he have these :

• Knowledge about technical and fundamental analysis.
• Proper risk management and trading strategy.
• Doing trade with research and avoid emotions.
• Prepared for a sudden crash and have a strategy to minimize losses.

So never start trading blindly because if you are a newbie it may turn to a most dangerous investment and worst than gambling. So never play with your fund and always DYOR.